Coca-Cola Bottlers Japan Holdings Inc.

Business Details

Business covering procurement, manufacturing, sales, bottling, packaging, distribution, marketing, and other vending machine-related activities for beverages in Japan's vending channel. Promotes digital marketing utilizing the smartphone app "Coke ON" and optimization of product assortment based on profitability criteria through renewal of the assortment system. In FY2025 (ending December 2025), sales revenue was ¥399,880 million, accounting for approximately 44.7% of consolidated sales revenue, making it a core segment.

Recent Overview

Q1 sales revenue declined slightly, but segment profit improved significantly from loss to profit

In Q1 FY2026 (ending December 2026), Vending Business sales revenue was ¥88,674 million (down ¥694 million, or 0.8%, year on year), a slight decline, while segment profit improved substantially to ¥1,611 million (compared to a loss of ¥2,955 million in the same period of the prior year), turning positive. Cost reductions, more efficient promotional expenses, and reduced depreciation expenses resulting from the revision of useful lives for manufacturing machinery and equipment contributed to improved profitability.

Key Products

Growth Drivers

• Improvement in per-case delivery price due to the effect of price revisions
• Improved vending machine operational productivity through renewal of the assortment system
• Cost reductions and improved manufacturing efficiency through transformation initiatives
• Demand capture through digital marketing utilizing the "Coke ON" app
• Improved transport efficiency and reduced transport distances through promotion of a local production-for-local-consumption model
• Reduced depreciation expenses due to revision of useful lives of manufacturing machinery and equipment (extended to 15–20 years)

Risks

• Structural decline in sales volume due to the continuing contraction of the vending machine market
• Demand decline due to price revisions (Vending Business sales revenue in Q1 FY2026, ending December 2026, down 0.8% year on year)
• Cost pressure from rising raw material and materials prices and unstable foreign exchange rates
• Decline in consumer sentiment and reduced demand for soft drinks due to price inflation
• Risk of additional costs associated with asset restructuring following the large-scale impairment of fixed assets (¥88,368 million in FY2025, ending December 2025)